The starting point in a healthy financial life is ‘kuzimana’ (saving). If you are like most people, the thought of saving money conjures up unwelcome thoughts of denying yourself from enjoying the fruits of your labour. But I want you to challenge your own perceptions about saving.
Sometimes you think, “life is too short, so enjoy the fruits of your labour while you still can’. Well, we don’t have a crystal ball to predict our individual lifespan but life could surprise you when you find yourself living way into the old age with nothing to lean on.
You may find another excuse for not saving—you don’t make that much money anyway— matter of fact you are always living on borrowed money. You actually think this savings talk is a pure insult for you. But I will ask you ‘have you taken time to think if all your expenditure is necessary’. And you further retort back ‘even if I were to save, the amount I can spare is so small, it can’t possibly amount to anything, can it?’ Well, I must disagree. Actually, you’d be surprised that saving small amounts can amount to significant savings over a period of time.
If you are young, you could also probably be thinking ‘I have plenty of time to start saving and right now isn’t a good time’. Again, I must disagree strongly. ‘The sooner the better’ should always be the motto when it comes to saving. A good time to start saving is never later. First of all, you can be sure that something is always going to come up that can prevent you from setting aside money.
It’s important to identify your opportunities for saving. Obviously, surplus money after expenses is a prime candidate. But changes to your non-essential spending may provide additional savings as well.
Again, the longer you wait to start saving, the more it will cost you in a big, big way. Money saved and invested today will be worth a lot more in five years than money saved a few months down the road. So there is no better time than now to get going on setting something aside. Remember, no matter how small the amount you can set aside, the sooner you start, the more you can make with that smaller amount due to the marvel of compounding interest.
Look at investing and saving as an exciting means of getting the most out of what you earn so that you can accomplish what you want. Whatever spending money you deny yourself won’t be so much, and think of what you can achieve by making the most of the investment vehicles available to you – whether it’s a savings account, the stock market, insurance, real estate, or your own business, you can use it to achieve the goals you set.